Overlooked Tax Credits That Could save You Money
If you're a working adult, chances are you are quite familiar with taxes. It's also probably likely that the idea of your hard-earned dollars going towards taxes isn't exactly something you look at with a favorable lens. While some payment is due, most people would be shocked to discover that there are a lot of tax breaks and credits they are simply overlooking. Take the time to familiarize yourself with these tips to help save you money.
Medical Expenses
Some people are under the impression that you need to have a substantial amount of doctor or hospital expenses in order to make claiming your medical costs worth it. However, this is entirely inaccurate. To understand this, you first need to consider what medical expenses really are. Medical expenses don't just include doctor bills, hospital visits and medication costs.
Medical expenses can also include self-care items. If you're a diabetic, the money you spend on your testing machine and strips is considered a medical expense. If you have celiac disease, the money you spend on gluten-free food can also be considered a medical expense. When figuring these costs, think outside the doctor's office.
Public Transit Passes
Did you know that some public transit passes actually qualify as a tax credit? More than likely the answer is no. If you hold a monthly, or longer, pass and you aren't claiming it, you're likely missing money. Unlike some other tax credits, public transit passes can be claimed for their full amount.
So, if you spend $100 a month on passes, that's a total of $1200 you can claim for the entire year. The money you save from claiming this expense can go towards the purchase of your passes for the following year.
Seek Out Assistance
There are a countless number of options out there that allow you to complete your taxes on your own. Some of these options even offer self-guided help and other assistance. However, none can compare to the benefit of an actual tax professional reviewing and preparing your taxes for you. Tax professionals take the time to interview before preparing your taxes.
Based on this information, they are able to investigate and locate different money saving strategies that you would have likely missed using a do-it-yourself filing method. In addition to helping you qualify for tax credits, you often have a lower risk of an audit when filing with a professional. Avoiding errors can help save you time and money.
Saving money on your taxes keeps more money in your wallet. Make certain you are working hard to look for any tax credits or breaks you qualify for.
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